Rexnord Exploring Possible Sale Of Company
Rexnord, the Milwaukee, Wisc.-based manufacturer of ball bearings, owned by Apollo Global Management, said yesterday it has hired the Goldman Sachs Group Inc. to review its options, including a possible sale.
The alternatives considered could include the sale of the company, the possible sale of one or both of its business platforms or the maintenance of the current structure and execution of the existing business strategy.
Rexnord is comprised of two strategic platforms, Process & Motion Control and Water Management, with approximately 7,300 associates worldwide. The Process & Motion Control platform designs, manufactures, markets and services specified, highly-engineered mechanical components used within complex systems. The Water Management platform designs, procures, manufactures and markets products that provide and enhance water quality, safety, flow control and conservation.
Apollo purchased Rexnord in 2006.
Also yesterday, Rexnord reported that its net sales for 3Q of fiscal 2013 were $472 million, a decline of 3% from the prior year (-2% core sales, -1% impact of foreign currency translation
Process & Motion Control reported net sales of $303 million in the third quarter contracted 4% from the third quarter of fiscal 2012. Excluding the 1% unfavorable impact of foreign currency translation, core net sales decreased 3% year-over-year as growth in sales to mining (non-U.S.) and energy end-markets were more than offset by softness in the North American short-cycle MRO portion, the company said.